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Many foreign jurisdictions have enacted LLC statutes. A lot of these jurisdictions are so-called tax havens, which generally means that an entity organized in that jurisdiction will not be taxed by that jurisdiction if the entity is not conducting any business in the jurisdiction. If a U. S. business or U. S. real estate is owned by an entity organized in a tax haven, the entity will not be doing any business in the tax haven and will not be taxed there.

As Congress frantically looks for ways to pay for the various stimulus and other wasteful spending proposals, increasing estate and gift taxes seems like a natural solution. Although these two transfer taxes account for a small percentage of the government&#8217;s revenues, these taxes are not on the radar screen of the middle class or its defenders. Consequently, these taxes can be increased with little unwanted attention, especially if the taxes are increased indirectly.